KUALA LUMPUR – May 3, 2017: The Ministry of Finance (MoF) has retained complete ownership of Bandar Malaysia after the share sale agreement for the project fell through.
The agreement was between TRX City Sdn. Bhd., the project’s master developer, with Iskandar Waterfront Holdings Sdn. Bhd. (IWH) and China Railway Engineering Corporation (M) Sdn. Bhd. (CREC).
In a statement today TRX City said that the deal failed because the IWH-CREC consortium could not meet the payment obligations outlined in the agreement.
The deal was entered on December 31, 2015, with the consortium being assigned to its benefits and responsibilities on July 21, 2016.
“TRX City will immediately be inviting expressions of interest for the role of master developer of Bandar Malaysia, with full ownership being preserved by the Ministry of Finance,” the statement reads.
It is further stated that the selection process will involve very strict criteria, including track record, speed of delivery and financial capability for such a large scale development.
“Upon its completion, the site will serve the national interests to an even greater extent than before,” says the statement.
Bandar Malaysia, sited at what used to be the Sungai Besi Royal Malaysian Air Force base, is the biggest development site in Malaysia that is also earmarked to be the country’s hub for the newly announced Digital Free Trade Zone.
It will also be Malaysia’s transport nucleus, connecting the KL-Singapore high-speed rail, MRT lines, KTM Komuter, Express Rail Link and 12 highways.
The deal was entered on December 31 2015 with the consortium being assigned to its benefits and responsibilities on July 21, 2016.